A parliamentary committee now wants to engage National Treasury CS John Mbadi on the way forward regarding the rampant third-salary rule in the face of the new tax measures.
The Public Accounts Committee of the National Assembly wants a way out after a number of state departments breached the constitutional requirement that staff earn less than one-third of the net salary.
This, the committee chaired by Butere MP Tindi Mwale, said is occasioned by the tax measures introduced in the last two years.
In the last two years, employees have been forced to part with 1.5 per cent of their gross salary and a further 2.75 per cent deducted towards the mandatory Social Health Insurance Fund.
The import of the extra deductions is that majority of employees end up on the one-third of basic pay threshold.
The Employment Act, 20078 also prohibits employers from deducting more than two-thirds of the basic pay from an employee.
MPs sitting at the oversight committee now want to deliberate with the Treasury on how to navigate the emerging reality where a number of civil servants are earning less than the one-third of their salary.
This emerged after auditor reports raised concerns on the number of civil servants taking home less than required by the law.
“It is time we engage with the National Treasury on why public servants are not complying with the law,” Lugari MP Nabii Nabwera said.
The legislator was supported by Rarieda MP Otiende Amollo who called for review of the regulations with a view of aligning it with the new reality.
“We need to engage so that we could recommend changes to the policy,” Amolo said.
The lawmakers spoke when they met Roads Principal Secretary Joseph Mbugua on queries raised by Auditor General key among them being non-compliance with the one-third of basic salary rule.
Auditor General Nancy Gathungu
in her 2022-23 report flagged the
state department for having 131
employees giving their net pay
below a third of their basic pay.
